UK already in recession, unemployment set to rise by 350,000 by next year – BBC

"A £40-50 billion taxpayer-funded life-belt for high street banks is being considered by ministers as a last resort. The Government could end up with sizeable stakes in Barclays, Royal Bank of Scotland, Lloyds TSB and HBOS by injecting fresh capital into them in return for preference shares. The idea would be to beef up the banks’ balance sheets while partly protecting taxpayers by taking a type of share that gives priority over ordinary shareholders." – Times

Labour rebel ends his campaign against Brown’s leadership

"George Howarth, one of the MPs agitating for a leadership challenge, last night called off the fight, telling the prime minister and a packed meeting of Labour MPs that the "hostilities are over."" – Guardian

"For a leader who is supposed to act with a great big clunking fist, Gordon Brown has a knack of catching opponents by surprise. What is this, a vulnerable Prime Minister made more secure by a dire financial crisis? And who is this, Peter Mandelson back in the Cabinet? Brown is more nimble-footed than he seems. When he’s on the ropes his enemies look out for a wild lunge when he has more subtle ways of making a mark. Politics feels tangibly different compared with the mood when MPs headed off in the summer." – Steve Richards in The Independent

Alistair Campbell has agreed to return to Labour as a key election advisor – Daily Mail

"Clark is not a household name, but he’s one of the cleverest people sitting on the Conservative frontbench and he is tipped to go very far indeed. Imagine a more worldly version of David Willetts. The son of a milkman (which means that, unlike many Cameronians, he’s immune from Labour "toff" charges), Clark has until now been in charge of Tory policy relating the voluntary sector." – Andrew Sparrow in The Guardian

Conservative tactic produces surprise defeat for Alex Salmond

"Something happened last week, though, that suggests a turning point, of sorts, has been reached. It was nothing as dramatic as a series of government defeats on a crucial bill or a succession of gaffes by ministers. It was simply the decision by the opposition parties to set up a vote on a government policy – ahead of the policy actually being introduced – leading to a certain and planned defeat for the SNP administration. The Conservatives decided to call a vote on the government’s plans to stop under-21s buying booze from shops, aware that they had the backing of the Liberal Democrats, the Greens and Labour. The Tory motion was passed, by 72 votes to 47 but then ministers made it clear they would press on regardless, determined to do something to tackle Scotland’s binge-drinking culture." – Hamish MacDonell in The Scotsman

Snap by-elections disenfranchise voters

"The speed with which parliamentary by-elections take place could be preventing voters from taking part, the Electoral Commission has warned. People sometimes only have two days to register for a ballot, it added. The commission wants the minimum time between calling and holding general elections and by-elections to be increased from 15 to 25 days." – BBC

And finally…

ConHome regular David Breaker catches this screen shot of Mr Brown on last night’s BBC News at Ten:

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